GWI plans rail line in Labrador Trough

Genesee & Wyoming Inc. and a new subsidiary, KeRail Inc., have entered into an agreement with Tata Steel Minerals Canada Ltd. (TSMC) for KeRail to provide transportation for the 4.2 million tons of iron ore TSMC expects to ship annually from a mine it is developing near Schefferville, Quebec in the Labrador Trough. As part of the agreement, KeRail will construct an approximately 21-km (13..6- mile) rail line that will connect TSMC's mine to the Tshiuetin Rail Transportation (TSH) interchange point in Schefferville.

"Operated as part of GWI's Canada Region, KeRail will haul unit trains of iron ore from its rail connection with the mine that will then travel over three privately owned railways to the Port of Sept-Iles for export primarily to Tata Steel's European operations," said GWI in an announcement Thursday.

"The new contract with TSMC will further expand GWI's operating presence in the Labrador Trough where GWI subsidiary Western Labrador Rail Services currently provides rail services to both Cliffs Natural Resources Inc. (CLF) and Labrador Iron Mines Holdings Limited."